On Thursday, three-month forward contracts put the yield spread between Brazilian and United States rates at 8.75 percentage points. And, you have questions about the existence of the carry trade, the borrowing at excessively...
Read MoreOfficials at the Federal Reserve and in many other leadership positions around the world believe that liquidity is the solution to our current woes. And, if the amount of liquidity that is in the anking and financial markets is...
Read MoreOn December 21, 2010, I made the following brash prediction:” my view of long term Treasury yields for 2011 is up, with the 10-year Treasury security reaching 4.5-5.0% in the upcoming year, a rise from around 3.3% to 3.5%...
Read MoreThe Federal Reserve, the European Central Bank, the Bank of England, and others, are all desperate to keep interest rates from rising. The debt overhang in the developed world is humongous and any substantial rise in interest...
Read MoreThe second application of “Quantitative Easing†on the part of the Federal Reserve System has now been on the books for several months. So, what has been going on at the Fed over this period of...
Read MoreWhen I read the news coming out of the Eurozone these days I get a very strong sense of déjà vu, all over again.This feeling comes from hearing over and over again, leaders, whether of nations or of...
Read MoreOne of the major contributors to world economic growth and development in the post-World War II years has been the ability of capital to flow relatively freely throughout most of the world. As capital began to flow more freely...
Read MoreToday, let’s put the conclusions of my first two blog posts of this year together. The second blog post discussed “Four ‘Uncomfortable’ Situations to Watch in Early 2011,’...
Read MoreThere are four situations in the financial area that require special attention in, at least, the early part of 2011. These situations pertain to the European debt problem, both sovereign and corporate, the problems being...
Read MoreHappy New Year!I have spent a good portion of the last week and a half reviewing my perception of the foundational philosophy undergirding the economic and financial policies of governments in the United States and Europe and I...
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